Lazard

Lazard’s Latest Levelized Cost Of Energy Analysis — Good, But A Bit Off?

… And What it Might Have Missed …

Lazard has produced its latest analysis of energy production costs in Lazard’s Levelized Cost of Energy Analysis – Version 11.0. Lazard is one of a small group of organizations whose incomes are dependent on customers who are investors and need the most accurate information possible. If Lazard makes a statement that is widely off the mark, it means that investors will not make the money they feel they should, and in fact they may even lose money. So Lazard has a powerful vested interest in being right. This is what makes its Levelized Cost of Energy (LCOE) information so important.

Lazard: Wind & Solar Power Costs Continue To Fall, Putting Coal & Nuclear At A…

Lazard is a global asset management company that tracks the cost of producing electricity, among other things. It uses a measure called the Levelized Cost of Energy (LCOE), which averages the estimated costs of construction, maintenance, and fuel for electricity generating assets over the number of megawatt-hours that each is expected to produce over its lifetime. In simple terms, it is one way of comparing different ways of making electricity to see which cost more and which cost less.

The Great Energy Disruption

Nearly 10 months ago, Tony Seba, author of the 2014 book Clean Disruption of Energy and Transportation, posted a video on YouTube, “CleanDisruption.” In both, he projected that a nearly complete disruption of the energy business would begin in 2020 and be well underway by 2022, the year he projects for distributed solar power with battery backup to fall below the cost of transmitting electricity. It is a point at which centralized power plants, if they are to compete with solar-plus-storage, will have to provide power for free. He believes that all centralized electric power producers will be obsolete by 2030, as will conventional cars and utility companies.